Joe Garza Explains Benefits of Texas Tax System (1)

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When it Comes to Job Creation, Texas is in a
League of Its Own

• Tax Trends Weekly

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Governor Perry is fond of talking about
the Texas Miracle.

• The states businesses have created jobs and
  attracted migrants from all over the country in
  the last two decades.
• From 2001 to 2011, when job creation in other
  states was anemic or even a net negative, Texas
  saw an increase of more than 730,000 private
  sector jobs.

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The data in Texas favor is impressive.

• The average wage for these newly created jobs was
  solidly in the middle of rankings compared to
  other states.
• This rebuts the claim that Texas was simply
  creating low-wage McJobs for low-skill workers.
• While Governor Perry has faced criticism for
  attracting businesses to Texas with various tax
  breaks and subsidies- what critics charge is
  corporate welfare at the expense of the poor-
  there is no doubt that businesses have taken
  these tax breaks into account when relocating to
  Texas.

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How Texas Got Ahead

• Perrys primary initiative for attracting out of
  state business is the Texas Enterprise Fund, a
  grant of over 410 million.
• Awards from the fund are offered to businesses
  conducting searches for a new location that have
  attracted the interest of other states.
• Eligible businesses must be able to guarantee the
  creation of high paying jobs and community
  involvement. In the past, awards have ranged from
  194,000 to 50 million.

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Far Reaching Benefits

• Though large businesses have a lot to gain from
  Texas policies, small businesses have it better
  there too.
• The Texas Tax Reform Commission initiated a
  reformed margins tax that significantly lowers
  the franchise tax rate.
• Under the new law, over 40,000 small businesses
  have been granted an exemption from the franchise
  tax.

6
How Money Walks

• In his book How Money Walks, Travis H. Brown
  examines the way that Americans migrate to states
  with low taxes and favorable business climates.
• Emphasizing Texass success at attracting
  job-seekers, Brown used IRS data to calculate
  that the state gained roughly 25 billion in
  adjusted gross income from 1992 to 2010.
• That shouldnt come as a shock when you look at
  how much individuals have to gain from moving to
  Texas.
• A person in the highest tax-bracket who moves
  from California to Texas and maintains the same
  salary effectively gets a pay raise by avoiding
  Californias onerous income taxes (13.3 percent
  in the highest tax bracket).

7
A Higher Quality of Life

• Texas business-friendly policies have allowed
  the states quality of life to remain high.
• The states economy has had measurable benefits
  for more than just top executives.
• Austin, Dallas, and Houston repeatedly top
  lists of cities with notable job growth, low cost
  of living and booming real estate market.
• Dallas has been hailed by Bloomberg as one of the
  best cities for new college grads, and Austin
  gets major points for its thriving startup
  culture.
• While critics may rail against the Texas
  philosophy of low government spending and
  favorable business regulations, an honest critic
  will acknowledge that this philosophy has had
  important benefits for the state.

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Important Factors to Consider When Choosing a
Financial Advisor

• The Approach
• A reputed company evaluates every aspect of your
  financial situation before suggesting a solution.
  An advisor should spend adequate time with so
  that he or she can gain true insight into your
  finances.
• Fees and Qualifications
• Make sure to find out how much the company
  charges and how much monthly payments will be. It
  is equally important to find out what type of
  qualifications the advisors possess.
• Will your Information be kept Private?
• This is another important question to ask. A
  reputable company will keep your information
  totally private and will make all of its
  decisions for the clients benefit.